Mba 530 Synopsis

MBA 530 Wk 2 Synopsis

Align Organizational Structure with Strategy

General Electric (GE)

Under the criterion "Align Organizational Structure with Strategy" I have chosen the topic of Organizing for Success

The issue that I Identified in the scenario is one of a lack of efficient strategy development pertaining to an obvious needs to restructure Interclean Inc.'s organizational design. Hewlett Packard understands that in order to organize an organization with goals of successful outcomes, leaders must posses the ability to effectively lead and motivate employees. "Jack Welch's innovative, breakthrough leadership strategies as CEO transformed GE into a highly productive, labor-efficient powerhouse with a staggering $400 billion-plus market capitalization" (Slater, 2001). GE's charismatic leadership requires leaders to poses energy, edge, and the ability to execute and energize employees. Welch believes that the way to motivate others to believe in the company's vision is to tap into the emotional energy of employees. GE's leaders not only motivate its employees but empower them as well. GE's strategy to redesigning the organization included developing teams, empowering, employees, and motivating employees via effective leadership and leadership styles. Jack Welch also used this type of strategy when attempting to redesign and organize General Electric for success. GE implemented Six Sigma, which is an applied methodology for improving business and organizational performance. "First Welch demonstrated the great paradigm of leadership, second Welch backed the Six Sigma program up with a strong reward system"(Neumann, 2006). Along with redesigning the organization with the goal of success, GE restructured its compensation program. General Electric understands that a successful organization offers awards that are coincide with employee effort. Interclean Inc. appears to only be focusing on sales percentages. Employees have expressed that sales will not be successful if current systems are left in place. The employees feel as though these systems work against them. "General Electric changed its incentive compensation plan for the entire company so that 60 percent pf the bonus was based on financials and 40 percent on Six Sigma results"(Neumann, 2006). This type of compensation package leveraged GE's leader's request of employee efforts on all levels. Such an attractive compensation package was surely embraced by employees. The Six Sigma training empowers employees while the compensation package offers an adequate reward. In order to advance up the corporate ladder, the Six Sigma training became a requirement rendering the company as one that organizes for success.

References

Neumann, B.R. (2006). Six sigma or the jack welch way of kicking but . Retrieved January 17, 2007 from http://www.benneumann.com/

Slater, R. (2001). Jack welch on leadership. New York: The McGraw-Hill Companies

Align Organizational Structure with Strategy

Hewlett Packard (HP)

Under the criterion "Align Organizational Structure with Strategy" I have chosen the topic of Competitive Advantage-Effective Management of People

The issue that I identified in the scenario is one of skepticism pertaining to Interclean Inc.s leaders ability to ensure that employees are not penalized for system inabilities. Employees are assuming that they will be penalized for sales that are dropped due to system error instead of by their skills and ability to sale. "The most well thought out business strategy will be executed effectively only when people are committed to achieving your organization's goals and when they possess the right set of skills demanded by the ever-changing marketplace"(Dougherty, Dreher 2001). Selectivity in recruiting, incentive